The bill H.334 aims to limit the use of noncompete agreements and stay-or-pay provisions in employment contracts in Vermont. It introduces a new section, 21 V.S.A. 495q, which declares any noncompete agreement void and unenforceable, with specific exceptions for agreements related to the sale of business interests or the dissolution of partnerships and limited liability companies. Additionally, employers are required to notify employees of the unenforceability of existing noncompete agreements. The bill also defines a nonsolicitation agreement and outlines employee rights against retaliation for exercising their rights under this section.

Furthermore, the bill establishes a new section, 21 V.S.A. 495r, which prohibits employers from enforcing stay-or-pay provisions that require employees to repay costs upon separation from employment, with certain exceptions. These exceptions include voluntary agreements and reasonable repayment amounts that do not exceed the benefits received by the employee. Similar to the noncompete provisions, employers must notify employees of any existing stay-or-pay provisions that are deemed void. The bill emphasizes protections against retaliation for employees who choose not to enter into such agreements. The act is set to take effect upon passage.